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Sir,
Here in Kaplan kit
It is written that cost accounting can be used in inventory valuation to meet the requirements of both internal reporting and external reporting.
Is that correct?It can be but not necessarily. For financial accounts inventory must be valued at the absorption cost. If the are using absorption costing for their management accounts, then they can use the same inventory valuation in their financial accounts. However if they are using marginal costing for their management accounts, then they cannot use the same valuation in their financial accounts.
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